- Recent policy decisions highlight the Indonesian government’s expectation of easing global pressures, even as yield conditions continue to trend upward globally.
- The hitherto stable SBN yields, supported by strong domestic demand, may have encouraged some foreign investors to take profits, which in turn added temporary pressure on the Rupiah through the balance of payments channel.
- Balancing growth objectives with exchange rate stability will be important to safeguard the government’s fiscal space.
